FGN Bond Auction October 2026: ₦1.75trn on Offer

The Debt Management Office (DMO) will auction ₦1.75 trillion of Federal Government of Nigeria (FGN) bonds on Monday, 19 October 2026, by reopening three existing bonds that mature in 2034, 2036 and 2038, with settlement on 21 October. It is the first of three bond auctions in the DMO's fourth-quarter calendar, which plans ₦5.75 trillion of offers by December. Here are the terms, what last month's auction showed and how ordinary savers can take part.

The October offer

The offer circular, published on 12 October and reported by the News Agency of Nigeria (NAN) and ThisDay, lists three reopenings.

Key terms from the circular:

• Units of ₦1,000, with a minimum subscription of ₦50,001,000 and multiples of ₦1,000 after that.
• Interest paid every six months, and the full principal repaid at maturity.
• The bonds are listed on the Nigerian Exchange and FMDQ, qualify for trustee investment and count as liquid assets for banks.
• The DMO reserves the right to allot at its discretion.

Coupon is not the yield you get

Because these are reopenings, the coupons are already fixed. What changes is the price. Successful bidders pay a price that matches the yield they bid, plus any interest that has built up since the last coupon date. So the 19.00% coupon on the 2034 bond does not mean a buyer earns 19.00%. If the auction clears at a lower yield, buyers pay more than face value and their return is lower than the coupon.

What happened in September

At the 14 September auction, the DMO offered ₦1 trillion across two bonds, Leadership reported.

Total bids were about ₦1.49 trillion and the DMO allotted ₦748.64 billion, plus ₦850 billion in non-competitive allotments. The 2038 bond's rate fell 94 basis points from 17.79% in August. In August the DMO allotted ₦805.16 billion, and bids then were ₦1.73 trillion.

Two of this month's bonds were sold in September, so those rates are the starting point.

Where the market stands now

The Government and Business Journal reported that the average FGN bond yield rose 2 basis points to 15.9% on 13 October, with the June 2036 and February 2034 bonds seeing the most selling. On 15 October, AIICO Capital said bond yields were flat, with the 5-year at 17.00% and the 20-year at 14.77%.

Two pieces of news could shape bids. The National Bureau of Statistics said on 15 October that inflation fell to 14.63% in September from 15.39%. And the Central Bank of Nigeria cut its policy rate to 23% in September. Lower inflation tends to support demand for bonds. But a large supply of new paper can push the other way.

The Q4 bond calendar

The DMO's provisional fourth-quarter calendar, described by Streamline Feed, sets out three auctions:

The calendar says the plan is provisional and can change at short notice. These are offers, not money already raised. In September, for example, ₦1 trillion was offered and ₦748.64 billion was allotted through the competitive auction.

What about small investors?

The ₦50 million minimum puts the auction itself out of reach for most people. Smaller savers usually buy FGN bonds through a stockbroker or bank on the secondary market, or through bond funds.

The FGN Savings Bond is built for retail. For October, the DMO set the two-year bond at 13.071% and the three-year at 14.071%, down 1.049 percentage points from September, TheEconomy reported. The minimum is ₦5,000 and interest is paid every three months. The October window closed on 9 October. The Savings Bond is offered monthly, so the next window is expected in November.

What this means for investors

• Watch the clearing rates on 19 October. If the 2036 and 2038 bonds clear below September's 16.79% and 16.85%, that would signal falling long-term rates.
• Higher supply ahead. With ₦2 trillion planned for both November and December, the DMO will need strong demand. Weak bids could push yields up.
• Compare with Treasury bills. The one-year bill stop rate was 15.90% on 14 October, according to The Government and Business Journal. Bonds lock in a rate for longer, but their prices move more when rates change.
• Real returns are positive. With inflation at 14.63%, current bond yields are mostly above inflation, before fees.
• Use the right product. For small sums, the Savings Bond or a bond fund may suit better than the main auction.

This is for information only and is not investment advice.

FAQ

When is the next FGN bond auction?

The DMO's next auction is on 19 October 2026, with settlement on 21 October. Further auctions are planned for 16 November and 14 December.

What is the minimum to buy FGN bonds at auction?

The minimum subscription is ₦50,001,000, then multiples of ₦1,000. The FGN Savings Bond has a ₦5,000 minimum.

What were FGN bond rates at the September auction?

The new 2036 bond cleared at 16.79% and the reopened 2038 bond at 16.85%.

Sources

• News Agency of Nigeria, "FG offers N1.75trn bonds for subscription at October auction" (14 Oct 2026)
• ThisDay, "DMO offers N1.75trn FGN bonds for subscription, sets October 19 auction date" (Oct 2026)
• Leadership, "DMO raises N748.64bn from September FGN bond auction" (Sep 2026)
• Streamline Feed, "DMO schedules ₦5.75tn Q4 bond offers, subject to change" (13 Oct 2026)
• The Government and Business Journal, "Treasury bills rally as FGN bonds weaken despite N2.41 trillion OMO inflows" (14 Oct 2026)
• The Government and Business Journal, "Nigeria's 364-Day T-bill rate rises to 15.90% as DMO allots ₦269 billion" (14 Oct 2026)
• AIICO Capital, "Financial Markets Today, 15 October 2026"
• TheEconomy, "FGN Savings Bond rates fall as October offer opens" (7 Oct 2026)
• DMO, FGN bond offer circulars